Pearl Diver Credit Company (PDCC) Q2 2025 earnings summary

Executive summary

• Delivered solid Q2 2025 results with net asset value (NAV) per share rising from $18.19 at June 30 to $18.48 by July 31, reflecting a 1.6% sequential increase and strong total return strategy amid macro uncertainty.

• Portfolio NAV reached $123.6M as of June 30, 2025, diversified across 52 CLOs managed by 31 platforms, with exposure to over 1,800 unique corporate debts.

• Actively managed CLO equity portfolio leveraging proprietary machine learning and data-driven investment platform for investment and risk management.

• CLO market remained resilient, with proactive risk management, including resets, risk-driven exits, and new positions.

Financial highlights

• Q2 2025 investment income was $5.5M ($0.81/share); net investment income was $3.1M ($0.46/share); net income totaled $3.5M ($0.52/share).

• Net unrealized gains on investments were $0.5M; net realized loss was $70K.

• Recurring cash flows from the CLO portfolio were $8M ($1.18/share), exceeding distributions and expenses.

• NAV per share was $18.19 at June 30, rising to $18.48 by July 31.

• $11.7M invested in primary and secondary CLO equity during the quarter.

Outlook and guidance

• Management remains optimistic about CLO market opportunities, expecting continued refinancing, resets, and value delivery in H2 2025.

• Portfolio positioned for attractive, risk-adjusted, and sustainable total returns, with a focus on maximizing high current income.

• Declared monthly dividends of $0.22/share for August, September, and October 2025.